Connecting the digital economy: that’s the vision of Bakkt (NYSE:BKKT), which runs a platform for trading and storing cryptocurrency. Some folks might even choose to use BKKT stock as a broker-friendly proxy for Bitcoin (CCC:BTC-USD).
Hopefully, we didn’t scare you away when we mentioned Bitcoin. As you may be aware, the BTC price recently slid from $65,000 to under $50,000.
As we’ll discover, however, Bakkt’s offerings aren’t limited to Bitcoin. In fact, the platform recently included one of the most important and popular cryptocurrencies.
On top of that, the BKKT stock price appears to be recovering nicely, while Bakkt’s revenue growth suggests a bright future for the stakeholders.
BKKT Stock at a Glance
Going back to the beginning, Bakkt went public via a special purpose acquisition company (SPAC) merger with VPC Impact Acquisition Holdings. The share price was originally set at $10, but unfortunately, the stock wasn’t able to hold that level. By the end of its first day of trading on Oct. 18, BKKT stock declined to $8.75. That, however, was just the beginning of a wild roller-coaster ride. Without any warning, the Bakkt share price shot up to $50.80 on Nov. 1. The stock then lost much of its value as it slid to $12 and change in early December.
Obviously, this is not an appropriate investment for anyone who’s averse to risk and volatility.
There may be a major comeback in the works, though. As of Dec. 9, BKKT stock was trading near $15 — could this be your signal to get in?
Don’t make any judgments yet, as informed investors should get in the habit of checking a company’s financials before jumping into a trade. So, let’s see what’s under the hood with Bakkt, fiscally speaking.
More Accounts, More Revenue
Through its secure and regulated platform, Bakkt taps into more than $1.6 trillion worth of digital assets across cryptocurrencies, gaming assets, gift cards, rewards/loyalty points, and more. And unlike some other crypto-centered platforms, Bakkt has significant offerings for institutional investors.
Is this a lucrative business model, though? That’s a legitimate question, and thankfully, it appears that Bakkt is headed in the right direction financially.
The proof is in the pudding, as they say. Bakkt’s third-quarter 2021 results paint a picture of a company that’s in growth mode, especially in terms of revenue generation.
Impressively, Bakkt’s addressable market “expanded to more than 100 million end consumers” during the third quarter. Also, year-to-date, the company had over 1.7 million transacting accounts across the Bakkt platform.
Here’s where the rubber really meets the road. Reportedly, Bakkt collected $9.1 million in revenue during 2021’s third quarter. This figure represents a 38% increase on a year-over-year basis.
An Essential Addition
With Bakkt showing outstanding revenue improvement, what more could the company do to enhance its shareholder value? For one thing, Bakkt could add a popular digital asset to its platform — and that’s exactly what the company just did.
According to a press release, Bakkt is offering its users and partners the ability to buy, sell and hold Ethereum (CCC:ETH-USD). In addition, Bakkt’s users can also send Ethereum to their family and friends directly through the Bakkt App.
Consider what this means. Between Bitcoin and Ethereum, Bakkt’s users will be able to access two tokens representing over half of the total market value of all cryptocurrencies.
The timing is ideal, as the crypto movement is growing quickly. Notably, a survey conducted by Bakkt found that nearly half of the respondents had purchased some form of cryptocurrency within the last year.
The Takeaway for BKKT Stock
Adding Ethereum to its platform should prove to be a savvy move for Bakkt as the adoption rate for cryptocurrency increases. Meanwhile, Bakkt has demonstrated its ability to generate strong revenue.
The crypto craze is more than just a passing fad. Cryptocurrency adoption is here to stay, and BKKT stock offers prime exposure for enterprising investors.
BKKT stock currently holds a “B” rating in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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